NEK KARYA SEWA SAMITI,INDORE vs. CIT EXEMPTION, BHOPAL, BHOPAL
Facts
The assessee, Nek Karya Sewa Samiti, applied for regular registration under Section 12AB. The CIT(Exemption) rejected the application due to non-submission of donation details, leading to the cancellation of its provisional registration.
Held
The Tribunal held that the order of the CIT(Exemption) violated principles of natural justice. The assessee undertook to submit all requisite donation details, and thus the matter was remanded back to the CIT(Exemption) for a fresh decision.
Key Issues
Whether the CIT(Exemption) order rejecting the registration application without providing sufficient opportunity was valid? Whether the case should be remanded for fresh consideration after submission of missing documents?
Sections Cited
253, 1961, 12AB, 10AB, 10AC
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
आदेश / O R D E R
Per Paresh M Joshi, J.M.:
This is an appeal filed by the assessee Under Section 253 of
the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’ for
sake of brevity) before this Tribunal. The assessee is aggrieved by
the order bearing Number ITBA/EXM/F/EXM45/2023-
24/1061948928(1)dated 04.03.2024 of the Ld. CIT(Exemption),
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Nek Karya Sewa Samiti ITA No. 428/Ind/2024 Bhopal, M.P. which is hereinafter referred to as the “impugned
order”.
Registry informed that there is delay of 4 days in filing the
appeal. Delay of 4 days condoned for which assessee has shown
sufficient cause. Appeal admitted and taken up for hearing.
FACTUAL MATRIX
2.1 The appellant is a Society, registered under the Madhya
Pradesh Societies Registration Act, 1973 vide certificate of Regn.
No. 03/27/03/15206/12 Dated 09/05/2012 and has
provisionally registered under Section 12A having provisional
Registration No. AAEAN1998BE20211 from AY-2022-23 to AY
2024-25 through order of CIT exemption dated 07/04/2022.
2.2 The objective of the Society is to make available free of cost
food packet to poor or lower-class students, Schools, hospital and
various distribution centre in city and to spread awareness
towards Medicine and Health in general. Society also provides
Medical Facility for CT-scan and MRI at free of cost or
concessional rate.
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Nek Karya Sewa Samiti ITA No. 428/Ind/2024 2.3 The assessee applied for regular registration under clause (iii)
of sub-section C of section 12AB(1) of the act, as per the new
provision of Income Tax Act, 1961 in Form 10AB on 30
September 2023 via Ack No. 373639010300923.
2.4 Consequently, opportunity letters were issued and various
documents/details were called for; to process the said application
on 04 December 2023 but due to Asses portal issues, assessee
could not access to the same on time. On 16 January 2024
assessee submitted the response along with the documents.
2.5 On 30 December 2023 & 19 February 2024 assessee again
received notices but no further documents/details were called
for. However, assessee again responded with all the documents
which were earlier submitted on 16 January 2024.
2.6 Assessee submitted reply it also requested to allow more
time to submit the donation details but no response was given
and order for rejection was issued.
2.7 On 04 March 2024 assessee received the rejection order in
Form 10AD stating that -
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Nek Karya Sewa Samiti ITA No. 428/Ind/2024
- Assessee has not submitted the donation details and
resubmitted the previous documents only.
- Assessee has submitted incomplete reply and requested to
allow more time to submit the donation details.
2.8 The application of the assessee in Form 10AB for grant of
registration u/s 12AB is rejected and the provisional
registration/approval u/s 12AB in Form 10 AC vide URN No.
AAEAN1998BE20211 dated 07.04.2022 is also cancelled saying
that non-compliance of required documents/information.
2.9 That the aforesaid order bears Number
ITBA/EXM/F/EXM45/2023-24/1061948928(1) and same is
dated 04.03.2024 (the impugned order) supra.
2.10 That the assessee being aggrieved by the impugned order
has preferred an appeal before this Tribunal and has raised
following grounds of appeal in Form No.36 which are as under:-
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Nek Karya Sewa Samiti ITA No. 428/Ind/2024
"1. The details of donation received could not be submitted. However, due to oversight, this compliance was missed for which we deeply regret. The audit report was attached from where the receipts can be seen. All donations were received through banking channel only. The society has now compiled the details and are ready for submission."
Record of Hearing
3.1 The hearing in the matter took place before us on
25.03.2025, when the Ld. AR for and on the behalf of the
assessee interalia contended that "Impugned Order" of Ld.
CIT(E) is in violation of principles of natural justice and is
therefore bad in law, illegal and not proper. It deserves to be set
aside by this Tribunal in exercise of its appellate jurisdiction.
The Ld. AR fairly conceded that no doubt donation details were
sought by Ld. CIT(E) at the material time but since the same were
not available at the material time it could not be supplied
however the same are available now and if this Tribunal is
pleased to set aside the impugned order then in the proposed
remand proceedings before CIT(E) they would submit the same
without any demur. Per contra Ld. DR for and on behalf of the
Revenue did not strongly oppose the contention of the Ld. AR and
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Nek Karya Sewa Samiti ITA No. 428/Ind/2024 finally left it to this Tribunal to take appropriate call on this issue
in accordance with law. In rejoinder Ld. AR submitted that they
indeed regret non compliance on part of the assessee but
asserted that in Audit Report donation amount could be seen as
having been received through normal banking channels. The
assessee has now compiled the details and that they are ready to
submit the same.
Observations,findings & conclusions.
4.1 We now have to decide the legality, validity and proprietary
of the “Impugned Order” basis records of the case and
contentions canvassed before us.
4.2 We have minutely perused records of the case and have
heard the rival submissions.
4.3 We are of the considered opinion that since Ld. AR has
under taken before us that the assessee would file all requisite
details of donation as requisitioned by CIT (E) it would be just
fair and convenient and in the interest of ends of justice that
impugned order be set aside and matter be remanded back to file
of CIT(E) to pass a fresh order on denovo basis after assessee has
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Nek Karya Sewa Samiti ITA No. 428/Ind/2024 submitted all details as sought. Hence we set aside the
“impugned order” as and by way of Remand on denovo basis.
Order
5.1 In the premises “impugned order” is set aside as and by
way of remand on denovo basis.
5.2 Appeal is allowed for statistical purpose.
Order pronounced in open court on 25.03.2025.
Sd/- Sd/-
(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER Indore िदनांक /Dated :25/03/2025 Dev/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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